I wonder if we went to longer trading days Monday thru Thursday, and closed the markets Fr-Su, would Thursday become slow too!
but I hope you are not implying that those "1-2-3-4-5" labels have anything to do with Elliott Wave, because they clearly do not.
obviously you don't have to answer this but if you would be willing I would be interested to know how you pick which strike to sell? Is it solely where you see support and resistance or do you take in to account things like ATR and vix or some other measure of volatility, or something else altogether? I am thinking of selling straddles to add to my outright directional trades in the underlying and it would be good to get any input on how to go about choosing the right strikes.
Sorry, dude. I got confused by the post before yours. What the heck is wiggle/waggie talking about? Anyway, what's ATR? You choose strikes based on your comfort level. A month ago, I wasn't so hot on the S&P declining (see "S&P looks good to a new high" thread), and so I sold what I thought was a safe strike 1050. As it turned out, I was probably more lucky than smart. It got too close for my taste in the last few days, but thankfully, it happened in the last few days. On other months when I'm more bearish, i'll be more aggressive, like selling 1025's and 1050's.
Thanks, Einstein. It won't go as high or low as it damn well wants to, it will stop at a level that super technicians can figure.
The vix is something that I would think would play a part in deciding what strike to sell in as much as when the vix is low it implies that volatility is low. However it will also mean that the premium will be relatively low. If the vix shoots up it could be a good indicator to use for either exiting one's position or paying closer attention to the market. Also if not already in a position it would perhaps help in timing ones entry ie when vix shoots up to top of its recent range that would be the time to sell the options.